Price Fixing by LCD Panel Manufacturers

Some of the top liquid crystal display (LCD) panel manufacturers in the world may have engaged in a conspiracy to fix the prices of popular LCD screens.  LCD panels are often the most expensive component of the end products they are used in, such as televisions, cell phones, laptops and computer monitors.

The complaint alleges that, starting in 1996, certain LCD manufacturers engaged in regular, secret meetings to fix prices and limit production of LCD panels.  This concealed conduct inhibited the ability of government watchdogs to put a stop to their illegal activities and resulted in non-competitive pricing.  The lawsuit, brought by the Mississippi AG, Jim Hood,  seeks civil penalties and a request for the court to order that the companies permanently cease their conduct, as well as damages for inflated prices paid for government and consumer purchases.

The companies named in the lawsuit include Hitachi, Ltd.; Hitachi Displays, Ltd.; Hitachi Electronics Devices (USA), Inc.; LG Display Co., LG Display America, Inc.; Samsung Electronics Co., Ltd.; Samsung Semiconductor, Inc.; Samsung Electronics America, Inc.; Sharp Corporation; Sharp Electronics Corporation; Toshiba Corporation; Toshiba Matsushita Display Technology Co., Ltd.; Toshiba America Electronics Components, Inc.; Toshiba America Information Systems, Inc.; AU Optronics Corporation; AU Optronics Corporation America, Inc.; Chi Mei Corporation; Chi Me Optoelectronics Corporation; Chi Mei Optoelectronics USA, Inc., CMO Japan Co., Ltd., Chunghwa Picture Tubes Ltd.; and Hannstar Display Corporation.

Department of Justice

In November 2008, the Department of Justice filed formal charges in U.S. District Court against LG Display Co. Ltd., Sharp Corp. and Chunghwa Picture Tubes Ltd., for violations of the Sherman Act. The three leading electronics manufacturers have agreed to plead guilty and will pay a total of $585 million in criminal fines for their roles in conspiracies to fix prices in the sale of LCD panels. LG will pay $400 million, the second highest criminal fine ever imposed by the Department's Antitrust Division.

In January 2009, the Department of Justice announced that executives from LG Display Co. Ltd. and Chunghwa Picture Tubes Ltd. agreed to plead guilty and serve jail time in the United States for participating in the global conspiracy to suppress and eliminate competition by fixing the prices of TFT-LCD panels. Under the plea agreements, which must be approved by the court, all four executives have agreed to serve a term of imprisonment, pay a criminal fine and assist the government in its ongoing investigation.

In April 2009, the court approved the plea agreements for several defendants in the case, including Chieng-Hon "Frank" Lin (CPT) - 270 days prison; $50k fine Chih-Chun Liu (CPT)- 210 days prison; $30k fine Hsueh-Lung "Brian" Lee (CPT) - 180 days prison; $20k fine Chang Suk Chung (LG) - 7 months prison; $25k fine. In the Hitachi case, the change of plea hearing and expedited sentencing for price fixing are scheduled for May 1, 2009.

If you would like more information about this lawsuit and would like to talk with an attorney, click below to fill out a free case review form or contact our firm directly, toll-free at 800-755-0098. Zimmerman Reed is experienced in handling antitrust cases and we welcome any questions you may have.